SSS 2010 Annual Report

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SSS 2010 Annual Report

  1. 1. SOCIAL SECURITY SYSTEM 2010 annual report KabaliKat sa tuwid na landassa Pagbangon ng Pilipinas
  2. 2. Highlights of Operations (Amounts in Million Pesos) Consolidated For the Year Increase/(Decrease) 2010 2009 Amount % A. REVENUES & EXPENDITURES Revenues 107,120.75 95,336.51 11,784.24 12.4 Contributions 79,272.86 72,350.89 6,921.97 9.6 Investment and Other Income, net 27,847.89 22,985.62 4,862.28 21.2 Expenditures 84,288.57 79,124.55 5,164.02 6.5 Benefit Payments 77,174.16 72,049.96 5,124.20 7.1 Operating Expenses 7,114.41 7,074.59 39.82 0.6 Net Revenue/(Loss) 22,832.19 16,211.96 6,620.22 40.8 B. ASSETS & RESERVES Assets 297,591.34 272,610.65 24,980.69 9.2 Investments 273,265.61 248,641.45 24,624.16 9.9 SSS Properties 3,318.75 3,413.69 (94.94) (2.8) Others 21,006.98 20,555.52 451.47 2.2 Liabilities 8,496.31 7,280.83 1,215.47 16.7 Reserves 289,095.03 265,329.82 23,765.22 9.0 Social Security System For the Year Increase/(Decrease) 2010 2009 Amount % A. REVENUES & EXPENDITURES Revenues 104,973.40 93,155.25 11,818.15 12.7 Contributions 77,956.99 71,166.95 6,790.04 9.5Contents Investment and Other Income, net Expenditures 27,016.41 83,102.24 21,988.30 77,931.69 5,028.10 5,170.55 22.9 6.601 Highlights of Operations Special Articles 28 Statement of Financial Position Benefit Payments 76,088.14 70,963.92 5,124.22 7.202 Statement of Mission and Vision 16 Implementation of the Condonation Law 29 Statement of Comprehensive Income Operating Expenses 7,014.10 6,967.77 46.33 0.7 on Penalty on Contributions 30 Statement of Changes in Reserves 17 The UMID: Its Mandate 31 Statement of Cash Flows Net Revenue/(Loss) 21,871.16 15,223.56 6,647.60 43.7Messages03 Message of the President of the Republic 19 2010 SSS Family Day 32 Notes to Financial Statements 20 2010 Staffing and other Human Resource 45 Internal Auditor’s Report B. ASSETS & RESERVES of the Philippines04 Message of the SSC Chairman Management Directions 46 Historical Data Assets 271,267.54 247,891.34 23,376.20 9.406 Message of the SSS President and CEO 21 The SSS Museum and SSS Library Investments 252,630.57 228,919.53 23,711.04 10.4 22 SSS In 2011 and Beyond: Heeding the Management SSS Properties 3,318.75 3,413.69 (94.94) (2.8)2010 in Review Call for Transformational Change 48 Photo of the Social Security Commission Others 15,318.21 15,558.12 (239.91) (1.5)10 Changing of the Guards 50 Photos of the SSS Senior Management Liabilities 8,604.29 7,389.38 1,214.91 16.4 Financial 55 SSC and SSS Management Directory Reserves 262,663.25 240,501.96 22,161.29 9.211 Expressing Corporate Social Responsibility12 Forging Partnership for Better Service 26 Statement of Management’s Responsibility 57 Photo of Annual Report Committee and13 Nurturing Relationships with Stakeholders for the Financial Statements Secretariat Employees’ Compensation and State Insurance Fund14 Developing SSS Employees 27 State Auditor’s Report on the15 Celebrating SSS’ 53 years Financial Statements For the Year Increase/(Decrease) 2010 2009 Amount % A. REVENUES & EXPENDITURES Revenues 2,147.35 2,181.26 (33.90) (1.6) Contributions 1,315.87 1,183.94 131.92 11.1 Investment and Other Income, net 831.49 997.31 (165.83) (16.6) SOCIAL SECURITY SYSTEM 2 0 1 0 a n n u a l r e p o r t About the Cover Expenditures 1,186.33 1,192.86 (6.53) (0.5) Benefit Payments 1,086.02 1,086.03 (0.02) (0.0) KabaliKat sa tuwid na landas sa Pagbangon ng Pilipinas Kabalikat sa Tuwid na Landas sa Pagbangon ng Pilipinas Operating Expenses 100.31 106.83 (6.51) (6.1) For 53 years, the Filipino has in the Social Security System of the Philippines or the SSS an ally, a partner and a friend. Net Revenue/(Loss) 961.02 988.40 (27.37) (2.8) Through its valuable aid and assistance programs, the institution has become a key player in the government’s program of nation building. B. ASSETS & RESERVES Our cover features an SSS member and his family, the recipient of SSS benefits, programs and services. He is a symbol Assets 26,431.84 24,827.91 1,603.93 6.5 Investments 20,635.03 19,721.92 913.12 4.6 of the care and protection that SSS aims to provide its network of members nationwide. A bright tomorrow for the SSS Others 5,796.81 5,106.00 690.81 13.5 member is promised as depicted by a backdrop of a modern, progressive cityscape; a long straight road symbolizes Liabilities 0.06 0.05 0.01 11.8 the nurturing support of SSS which is in line with the new administration’s “Tuwid na Landas”. Reserves 26,431.79 24,827.86 1,603.92 6.5
  3. 3. Message Statement of Mission of the President of the Republic of the Philippines The mission of the SSS is spelled out in Section 2 of the Social Security Law (Republic Act No. 1161), as amended by the Social Security Act of 1997 (Republic Act No. 8282): “It is the policy of the State to establish, develop, promote and perfect a sound and viable tax- My warmest greetings to the Social Security System on the exempt social security system suitable to the needs of the people throughout the Philippines, publication of your 2010 Annual Report. which shall promote social justice and provide meaningful protection to members and their beneficiaries against the hazards of disability, sickness, maternity, old age, death and other I commend the SSS in your more than 50 years as a key contingencies resulting in loss of income or financial burden. Towards this end, the State shall partner of government, fulfilling our collective mission to endeavor to extend social security protection to workers and their beneficiaries.” improve the lives of our people. Through the protection that you provide your members and your programs supporting their respective enterprises, your institution has proved crucial not only to the public welfare but also to our Statement of Vision common goal of revitalizing the economy. It is my fervent hope that you will carry on in your thrust to empowering The SSS aims to develop and promote a viable, universal and equitable social protection our citizenry and making them vital participants, as we set scheme through world-class service. out to rebuild our country in this daylight of hope. VIABLE means that it is financially sustainable, non-distortionary, and requires no government We have the momentum to sustain this movement for subsidy. Current and future generations of workers and retirees are also assured of meaningful national transformation, to report our government and benefits in return for their contributions. society and to restore our country’s place in the community of nations. Let us stay united as one people in realizing our UNIVERSAL means that protection shall be provided to all residents of the Philippines, citizens dream of a stable, progressive Philippines. and non-citizens alike, regardless of race, creed, gender, age, geographic location and socio- economic status. Attention will be given specially the disadvantaged and overseas Filipino workers (OFWs). EQUITABLE means fair and uniform coverage shall be made available to all. Benefit entitlements shall be closely linked with contributions. TUWID NA LANDAS AGENDA: WORLD-CLASS SERVICE means that the highest standards of service shall be used to ensure BENIGNO S. AQUINO III 1. Transform the organization and total member satisfaction. A multi-skilled, forward-looking and generalist SSS workforce shall its employees; provide service that is prompt, accurate and courteous. 2. Simplify/Innovate to reduce corruption and improve efficiency; and, 3. Optimize resources.2 2010 AN N UAL REPORT 3
  4. 4. RESPONDING TO A SUBLIME ADVOCACy Message of the Chairman T he year 2010 was a promising one. We witnessed a dedicated officers and employees who had toiled throughout A commitment to strike a balance between our corporate I am confident that we can sustain this positive growth as we turning point in our national history that heeded the call the decades for the benefit of its current members and their goals and institutional responsibilities is magnified through all work together towards a bigger, better and more professional for genuine change in society filled with hope. beneficiaries and future generations. the policies that the present Commission formulates and SSS for our members. passes. More than just strengthening the fund’s financial The Social Security System is an ideal template for one to Also in 2010, the Social Security Commission laid down policies condition through optimum compliance, realizing investment On behalf of my fellow Commissioners, I thank the Management renew his enthusiasm and entrepreneurial spirit. A government to put in effect the laws passed by Congress, R.A. No. 9903 earnings thru prudent investment mechanisms of the SSS and and all the hardworking officers and employees for their financial institution immersed with the working man’s vision of or the Social Security Condonation Law of 2009 and R.A. No. advancing economic and social development, the Commission remarkable work and steadfast commitment to the SSS. perpetual social protection. The SSS is energetic, professional 9507 or the Socialized and Low-Cost Housing Restructuring is determined to adhere to the principle of promoting social and has achieved and still much capable of attaining greater and Condonation Program. These two laws were designed to justice in the country. heights that can make a real difference in our country. encourage employers and member-borrowers to update their records with SSS, while benefitting from the condonation of The SSS workforce expresses its support and adherence to the So it was with great honor that I accepted the challenge, after accumulated penalties and loan restructuring schemes. Quality Policy of the SSS, in line with the mandate of the Citizen’s spending nearly four decades of my professional life using Charter where a commitment to provide prompt, convenient, whatever management and leadership skills I honed in the The implementation of the Member Loan Penalty Condonation reliable and meaningful social protection services to our current private sector while steering the course of the biggest food Program for Employers restored employees’ access to benefits and future members and their beneficiaries is emphasized. We company in the country. and privileges that SSS provides for its members while allowing also commit to follow international standards and the Anti- member-employers to update and remain compliant. Red Tape Act in rendering service to our constituents through The historic change in national leadership in 2010, together continuing improvements of our work processes founded on JUAN B. SANTOS with laudable performance of the SSS allowed the net revenue Further initiatives are likewise underway to encourage non- good governance, public accountability and transparency. of the fund to soar from Php16.21 Billion in 2009 to Php22.83 paying members to return to the fold through intensive coverage Billion in 2010. drives directed at local government units, government agency The SSC will continue to initiate policy reforms to remove partners and special sectors all over the country. The OFW needless obstacles that are counter-productive to the concept of The new Commissioners of the Social Security Commission, Caravan will also send several hard-working commissioners, universal coverage. The board committees composed of Audit, together with the highly-capable President and Chief Executive together with SSS officials and staff, to conduct drives in key Investment Oversight, OFW Coverage, Information Technology, Officer look forward to further improve the health of the fund, countries with high concentrations of overseas Filipino workers and Coverage and Collection strengthens communication lines inspired by the commitment and efforts of its competent and to bring in other coverable employed members to the fold. with management and amplify the thrust of this Commission as an enabler of worthy plans and programs.4 2010 AN N UAL REPORT 5
  5. 5. REDEFINING THE DYNAMICS OF SOCIAL SECURITY Message of the President and CEO Magic Key that Opens Countless Doors of functions in some areas of the organization and through I would like SSS to be always ready to attend to our members in I made the whole workforce cognizant of the fact that the the use of the latest computer technology. We also enhanced times like these – making sure that benefits and privileges are road towards these may be a long and arduous one. The SSS In 2010, when I accepted the position as President and CEO of our benefits and privileges to our members through growth in not only adequate to the basic minimum level but also given employees felt the heavy load, too. yet we agreed that we will the SSS, I knew what I was getting into. I knew that if there is our earnings and resources. And we moved to create a more expeditiously and without unnecessary effort on the part of the not hesitate to take that road, for the reward of an enduring SSS any place where one’s mettle for service is truly tested, it is in humane and responsive social security for all generations to claimant. I would like SSS employees to be in the position to is well worth it. government service where the challenges are often multifold come for all Filipinos in all parts of the world. assure all our valued members that we will walk with them and where time and resources are always not enough to get through economically trying times, that we will assist them in Contribution Collections the job done. I knew that leading a public institution that is as SSS as Bastion of Civic Responsibility every way we can so that they can fully avail themselves of challenging and as complex as the SSS with over 28 million the benefits and privileges due them. I would like the whole In 2010, collection of contributions continued to rise to a record- membership is not going to be easy. I knew that I have to chart Workers all over the country have different stories to tell, yet SSS workforce to make our members feel that SSS is their high of over 79 billion pesos as compared with over 72 billion a roadmap that will serve as our guidepost in refreshing the their stories share a common theme. This is – that every hard- stronghold, their bastion of hope, theirs and their loved ones’ pesos in 2009. This was realized through the implementation of institution, reinvigorating its sense of mission and reaffirming earned peso is needed in the present time. Essentials such as security for a better future. RA 9903 or the Social Security Condonation Law of 2009 and its mandate of social protection. food, shelter, clothing, and, if possible, education, cannot be RA 9507 or the Socialized and Low-cost Housing Restructuring put off for tomorrow. Worst, more often than not, there is seldom Despite the immensity in breadth and scope of the work, 2010 and Condonation Program. Efforts of collecting delinquent My resolve to serve was bolstered by a magic key that helped enough money left over to prepare for the unpredictable, but saw our commitment to pursue our mandate with dedication member contributions and loan amortizations were intensified me to steer SSS to the direction where it should go. This was imminent future. and zeal. We were ever forward-looking and started putting in and the installment payment scheme and dacion-en-pago President Benigno S. Aquino III’s “matuwid na daan” which place social protection strategies specifically in the following guidelines for delinquent employers were revised to liberalize opened a lot of challenges and opportunities that signaled that But the future will come. That is the harsh reality of life and it requisite action areas: social security coverage expansion; more installment terms. This strategy brought in over a billion pesos 2010 was the propitious time to intensify work in the SSS and will not always be rosy and bright when it arrives. Breadwinners meaningful benefits; investments optimization; continuous that exceeded the target of 900 million pesos. to regain its focus. may fall ill, debilitating accidents may occur, and the youthful improvement of our work processes following international intensity and vigor with which we work today will someday standards in service delivery to qualify for ISO certification This increase in contribution collection was also attributed So while I recognize what my predecessor did, that is, bringing give way to old age. from international certifying body; adherence to the SSS through the expansion of the coverage of the public transport SSS to its prime position in the field of social security which was Quality Policy in line with the mandate of the Citizen’s Charter; sector and the seafarers when a partnership between the Land indeed no mean feat, we started work. We moved to fortify SSS In the midst of all these, social security fund is probably the organization re-engineering; and, charter amendments pursuit, Transportation Franchising Regulatory Board (LTFRB) and the financial standing by enhancing our financial viability through least expensive yet most feature-rich insurance package a among others. Philippine Overseas Employment Administration (POEA) was reinforced investment portfolios. We improved our operations worker will ever find and can rely on to tide him over until forged. Another source was the completion of the agreement through enhancing our service capabilities through delineation times become normal.6 2010 AN N UAL REPORT 7
  6. 6. MEssAgE Of ThE PREsidENT ANd CEO between SSS and Portugal that provided voluntary social As countries in the world achieve higher levels of economic security coverage to Filipinos residing in that country. The development, their social security systems also advance in marked increase in contribution collection was complemented parallel, extending the scope, level and quality of benefits and by expanding the network of e-payment facilities that ensures services provided. SSS lives with this principle as it started steady inflow of collection. implementing RA 9485 or the Anti-Red Tape Act (ARTA) where the step-by-step processes of its operations as well as the ideal Benefit Payments processing time are laid out. It also provided a yardstick within which to measure the performance of our frontline services. SSS paid over 77 billion pesos worth of benefits to its members reflecting a seven per cent increase in 2010 from the previous In line with this was the beginning of the efforts to inculcate 72 billion pesos released in 2009. The bulk of the releases in the consciousness of every SSS employee the essence went to retirement and death claims which accounted for of the Quality Policy and the significance of the continual nearly 85 per cent of total disbursements for the year. Parallel improvement of the work processes and orienting them in to this, measures to strengthen control in benefit payments installing the Quality Management System (QMS) in our were undertaken to ensure that the right benefits were afforded operations as a requirement towards ISO certification by an to the right beneficiaries at the right time. These measures international certifying body. were through the following programs: Enhanced Annual Confirmation of Pensioners; Revisions in the New Disability Our effort in upgrading our Information and Communication Program; Expansion of Sickness, Maternity and Employees Technology (ICT) system was notably a huge success. Twelve Compensation (SMEC) payments through the banks; conduct of its application systems from BSS to M9000 servers have already been migrated and completed. The new server allows disciplined. And they are not so much those who are brilliant as most important thing is to be unified by a common purpose, of meetings with the banks for the Electronic Data Interchange the enhancement of online capabilities while ensuring data much as those who are balanced. We have a huge membership a common commitment. Challenges are enormous. Speed is (EDI); Database Clean-up as a result of erroneous contingency integrity through stricter server security. Microfilming of our to serve so we have to have a workforce who looks at service as critical, therefore, focus is key. date, mismatched records in claims information, employee members’ records has also been started to enhance functionality not merely a task but a calling, a privilege and an honor. static and pension database. and accessibility. As SSS enters 2011, it braces itself to face more challenges even 2010 was the year when efforts to reinvigorate the human while we thank our valued members and their beneficiaries, Surge in Investments Income SSS has deployed and installed 290 ID card readers in resource machinery happened. This was through the our pensioners, our partner banks and other business partners, different branches to facilitate faster transactions and eliminate implementation of the Staffing Plan by promoting and absorbing the SSS personnel, the Social Security Commission, and His SSS optimized its investments and managed to post a moderate fraudulent claims. These card readers are compliant with deserving employees as well as upgrading and reclassifying Excellency President Benigno S. Aquino III for their unrelenting of over 27 billion pesos worth of investment income which the specifications of the Unified Multi-Purpose ID (UMID) executive positions. It was also in this year that various training support, trust, confidence and inspiration. was 34 per cent higher than the targeted 20 billion pesos for system. SSS, as member of the core group, has participated in programs were implemented to enhance the technical skills of 2010. Bulk of the income was contributed by SSS investments various technical working meetings and seminars to ascertain the whole workforce. We commit to continue to rejuvenate the SSS by infusing in government securities and equities that amounted to over the smooth transition of the SS ID to the UMID system. The innovative and productive strategies that would secure the 22 billion or 82 per cent of the total investment income. The UMID, which aims to streamline, harmonize, and unify existing The new Performance Evaluation System (PES) was also health of our funds while we make our operations respond SSS has also begun efforts to implement a trading system for ID systems in the government, has been envisioned as the designed in order to enhance institutional productivity. This to the call of the government towards transformation. We are equities and other tradable investments. It has also started government’s springboard in infusing the benefits of ICT to was followed by the development of a PES customized for the confident we shall be able to build a groundswell of support for exploring prospective foreign investments for diversification. improve public service. executives. our efforts, for we look at this as a rewarding endeavor. SSS has also engaged in developing programs that aimed to I and the rest of the SSS workforce have been made aware that On a lighter side, we encouraged our employees to indulge I exhort everyone in SSS to feel a winner – never giving up. improve the management of member loans. We have started we have much to be grateful for, and that we still have much in various athletic, cultural and arts appreciation activities to A wise man says: “The one who finishes the race is not the closing our Direct Housing Loan Program while establishing to strive for. renew camaraderie, foster teamwork and develop unifying strongest of all but the one who never gave up.” the guidelines for the implementation of the Member Loan spirit and just have fun. Penalty Condonation Program for Employers. The full-scale implementation of RA 9507 or the Socialized and Low-cost Nurturing Competence and Professionalism in Housing Loan Restructuring and Condonation Act has likewise the Organization Exhortation greatly improved SSS’ liquidity. It is notable, however, that the ratio of the social benefits through increased ownership and The transformations that are unfolding in the country serve as a The greatness of a nation does not only depend on the liberalizing access to home loans far outweighs financial profits. constant reminder of the need to keep the skills and competence advancement of its technologies, the expanse of its conquests of our employees abreast with the evolving social security or the wealth inside its coffer. The greatness of a nation lies in needs of our constituents. Based on what we have experienced, the moral fiber of its number one resource – its people. In the Improved Service Delivery vis-a-vis Lean EMILIO S. DE QUIROS, JR. progress happens by fits and starts, zigzagging upward with same breath, I would like to exhort everyone in the SSS that Spending many reverses. This is why in a complex organization such as we be guided by this adage. While we work hard to improve the SSS, we need effective, balanced people who know how to the management of our assets, enhance fiscal standing and In line with the government’s campaign for enhanced public adapt to this dynamics. In the corporate world, highly successful efficiency in our work processes, post remarkable growths in service and observance of judicious spending measures, SSS people are not so much those who are experienced in terms of all areas of operations, adapt to the ambivalent socio-economic showed a lower actual operating expenditure recorded at 7.11 years of tenure as much as those who are effective. They are not landscape of the country, or even earn the status of being the billion pesos compared with the projected figure of 8.65 billion so much those who are determined as much as those who are economic backbone in the field of social security, still the for 2010.8 2010 AN N UAL REPORT 9
  7. 7. 2010 iN REViEW PROPELLING NATIONAL GROWTH THROUGH EFFICIENT SERVICES Expressing Corporate Social Responsibility Corporate Social Responsibility is not just a passing trend or once-a-year event in SSS; it is a serious and continuing commitment by both the management and workforce to exercise good corporate citizenship by helping the lesser privileged through community work and public service. For the SSS employees, their passion for volunteer work found fruition in the SSS Kabalikat ng Bayan Volunteer Corps, which conducted humanitarian missions in various cities throughout the year, some of which were sponsored by SSS as an institution. Changing of the Guards The year 2010 was marked by a change of government leadership of the country, after the May 2010 elections. With President Benigno S. Aquino III at the helm, the entire nation rallied support for his call for reforms and to follow “ang matuwid na landas” (the straight road). A change of leadership of the SSS also ensued in 2010, with veteran banker and insurance executive Emilio S. de Quiros, Jr. appointed as SSS President and Chief Executive Officer by President Aquino. The head may have changed, but the mandate of SSS remains the same: provide meaningful protection to members and their families against the hazards of life.10 2010 AN N UAL REPORT 11
  8. 8. 2010 iN REViEW Nurturing Relationships with Stakeholders Employers, individual members (whether based inside or outside the country), and pensioners: these are among the Forging Partnerships for Better Service important stakeholders that SSS must always keep in mind as it continues to improve its programs, enhance its services, extend The SSS cannot perform its mandate of service alone. Despite its coverage, or strengthen its fund life. After all, without these the breadth of its reach, SSS still requires partnerships with stakeholders, SSS would not have lasted all these years. other agencies and institutions so that social security benefits and services meet the members’ needs in a timely and accurate manner. In 2010, SSS continued developing and enhancing its electronic and Internet-based-services in order to serve members faster and easier. The SSS management also met with other social security, business and economic experts during various conferences to share ideas, knowhow and experiences in order to improve services, policies and programs.12 2010 AN N UAL REPORT 13
  9. 9. 2010 iN REViEW Celebrating SSS’ 53 years The SSS celebrated its 53rd Anniversary on 01 September 2010. Anchored on the theme “SSS: Kabalikat sa Tuwid na Landas sa Pagbabangon ng Pilipinas”, this celebration highlighted SSS’ continued commitment in promoting the welfare of all Filipino workers and their families, alongside the government’s efforts to eliminate poverty and improve the quality of life of every Filipino through good governance. Developing SSS Employees Going hand-in-hand with strengthening SSS as an institution is developing the skills and knowledge of its employees, as well as looking after their well-being. In 2010, the SSS Rationalization program was fully implemented, which saw the reorganization of key units in the main office and branches, the realignment of positions and job levels, as well as the absorption of long- serving service bureau personnel into the regular workforce.14 2010 AN N UAL REPORT 15
  10. 10. sPECiAL ARTiCLE THE UMID: ITS MANDATE SSS as lead agency: From SS card to UMID The UMID stands for “Unified Multi-Purpose Identification.” This Initially, the National Economic Development Authority (NEDA) idea was initiated by the Executive Department of the National took the lead in conceptualizing the machinery of UMID up to Government and the effort was reinforced through the issuance the preparation of the initial draft of the implementing Rules of an Executive Order (EO) No. 420 s.2005, that mandated all and Regulations (IRR). In 2008, however, an amendment SPECIAL EVENTS. government agencies and government-owned and controlled to EO 420-s,2005 was issued identifying the social security corporations to streamline and harmonize their ID system. Identification system as the core of the UMID and directing the SSS to lead in its implementation. This is because in 1998, the UMID aims to: SSS acquired a fingerprint biometric-based system for the social PROJECTS. security card. Over 11 million social security cards, so far, had SPECIAL (1) reduce costs and thereby lessen the financial burden on both the government and the public brought about by the use of multiple ID cards and the maintenance of redundant databases containing the same or related information; been generated and issued through this system until April 2010 when card production was stopped due to facility breakdown. The social security card has gained integrity as a reliable ID card. Through the years, banks, business establishments, the (2) ensure greater convenience for those transacting courts and other government agencies, including the passport- business with the government and those availing of issuing office use this for identification of its holder, who government’s services; transacts business with them. (3) facilitate private businesses and promote the wider use of the unified ID card; The SSS endeavored to upgrade its system, factoring in the IMPLEMENTATION OF THE CONDONATION (4) enhance the integrity and reliability of government- availability of new technologies that observe international issued ID cards; and standards, similar to the machine-readable travel documents LAW ON PENALTY ON CONTRIBUTIONS by the International Civil Aviation Organization. (5) facilitate access to, and delivery of, quality and effective Republic Act No. 9903, otherwise known as the “Social Security government service. The success of the program was brought about by the conduct of Condonation Act of 2009,” was signed into law by former President a massive information campaign–both at national and local levels. After painstaking efforts to upgrade the system that uses Gloria Macapagal-Arroyo on 07 January 2010. It took effect on The campaign consisted of print replacements; brochures and The UMID system includes minimum safeguards, as follows: biometric technology and fingerprint matching to determine a 01 February 2010. Pursuant to the law, the Social Security flyers; posters, banners and streamers; press releases; and radio/TV person’s identity, an over-all system design came to the fore Commission (SSC), under its Resolution No. 110 s.2010 dated 10 interviews. The guidelines for the Program were published in the (1) The data to be recorded and stored, which shall be with the concurrence of UMID participating-agencies. This February 2010, issued the rules and regulations for the effective SSS website and intranet. used only for purposes of establishing the identity of UMID card has three core components: implementation of the said Act. a person, shall be limited to those specified in the EO; The implementing rules provided measures that ensure the (2) In no case shall the collection or compilation of other (1) The CRN, the unique number generated and assigned Under the said condonation law, any employer who is protection of the rights of SSS members. Should the settlement data in violation of a person’s right to privacy be by the central verification system to an individual delinquent on his payment or has not remitted all contributions of contributions through full payment or installment result in allowed or tolerated; upon successful enrollment into CRN Registry. CRN due and payable to the SSS, must, within six (6) months from its additional benefits for contingencies that have occurred prior to (3) Stringent systems of access control to data in the is needed for cross-verification to ensure integrity and effectivity, (a) remit said contributions; or (b) submit proposal to the date of settlement or shall occur within the installment period, identification system shall be instituted; reliability of identification. Once assigned, the CRN is pay the same in installment within a period not exceeding forty- the employer shall pay the SSS damages in accordance with the (4) Data collected and stored for this purpose shall be permanent; eight (48) months. provision of the Social Security Act. kept and treated as strictly confidential. A written (2) The CRN Registry, which contains the records of authorization of the Owner of the identification card individuals enrolled and assigned with CRN; and As of 02 August 2010, the last day of the six-month availment Although the availment period for the Condonation Program has shall be required for access and disclosure of data as (3) The UMID Card, the secured medium which contains period, a total of 24,043 employers availed of the Program, with already ended, a delinquent employer may still avail of other total obligation of P3,545,916,077 and condoned penalty of well as for any correction or revision of relevant data, the CRN. This can be presented by the individual as payment modes either under SSC Circular No. 6-P (Amended P3,423,935,010. Of those who availed, 15,591 (65%) employers or under such conditions as the participating agency proof of his identity. Dacion en Pago pursuant to Res. No. 29 dated 16 January 2002), with total obligation of P710,345,281 (20%) paid in cash, while or Circular No. 2011-002 (Revised Guidelines in the Installment issuing the identification card may prescribe; and 8,451 (35%) employers availed of an installment scheme where Payment Scheme for Employers pursuant to Res. No. 976-s.2010 (5) The identification card to be issued shall be protected The data to be collected and recorded by the UMID the current obligation of P500,118,723 (14.1%) was paid in cash, dated 08 December 2010). by advanced security features and cryptographic participating-agencies are the following: and the remaining obligation of P2,335,452,073 (66%) to be paid technology. on installment basis. Excluded from the count of availees are those (1) Name; “who, before the effectivity of the Act, have settled all contributions The UMID is not a national ID nor is it compulsory to all (2) Home Address; but with accrued penalties” or those whose obligation consists of Filipino citizens. It will be issued only for the constituents (3) Sex; penalty only. The penalties of employers who belong to this group of the participating agencies – Social Security System (SSS), (4) Picture; are condoned by operation of law. Government Service Insurance System (GSIS), Philippine (5) Signature; Health Insurance Corporation (PHIC), and National Home (6) Date and place of birth; Mortgage Finance Corporation (NHMFC). Licenses issued by (7) Marital status; the Land Transportation Office (LTO), Professional Regulation (8) Names of parents; Commission (PRC), and ID issued in conformity with treaties (9) Height; and international law, like passports and seaman’s ID, are (10) Weight; excluded in the system. These agencies, however, may join the (11) Two index fingers and two thumbmarks; UMID, if they so desire, by adopting the Common Reference (12) Any prominent distinguishing features; and Number (CRN) into their own system and by following other (13) Taxpayer Identification Number. legal pertinent requirements.16 2010 AN N UAL REPORT 17
  11. 11. sPECiAL ARTiCLE The UMID System: Its Targets 2010 SSS FAMILY DAY All participating agencies are allowed to undertake enrollment The SSS Family Day is an annual System-wide activity or data capture subject to the set of enrollment standards that encourages camaraderie and the strengthening of the developed by the National Technical Working Group for record relationship and familiarity among SSS employees and their formats of demographic and biometric data. Prior to deployment families. The 2010 SSS Family Day mirrored such an interaction of enrollment stations, the compliance with such standards shall and the SSS compound became a venue for what we considered undergo a test by a conformance laboratory and a Certification as a momentous and joyful event the memory of which we process. For its part, the SSS deployed 131 enrollment stations shall always treasure. in 95 SSS branches which have an individual capacity of 70 captures per day on an eight-hour basis. The 2010 SSS Family Day for the Main Office was concluded in four (4) separate events. This was divided into four (4) groups, All outputs by the enrollment stations are inputs to a central namely (1) the Social Security Commission and President’s verification system (CVS). The CVS employs a civilian automated Group, (2) IT Management Group and the Program Manage- two-fingerprint identification system (AFIS). The accuracy ment Group, (3) the Controllership Group and Branch Opera- requirement of the AFIS is 99.5% true accept rate and 0.01% tion (Corporate Offices), and (4) the Administration Group and false accept rate. The “True Accept rate” is the percentage of Investments Sector. times the AFIS correctly verifies a true claim of identity. On the other hand, “False accept rate” is the percentage of times The Social Security Commission and President’s Group con- the AFIS produces a negative claim of identity. In statistics, the ducted theirs at the MAC building, Diliman, Quezon City on 20 former is the probability of acceptance given that the claim of November 2010. Major activities included installing a photo identification is true, while the latter refers to the probability booth, parlor games and entertainment/videoke-singing. The that the claim is false. The CVS has a matching speed of 1,000 group had a total of 339 attendees. (322 employees and family enrollments per hour 24/7. The 11.5 million person-records in members). the old SSS AFIS were already migrated in the CVS. The capacity of CVS with Blade System as primary server, is scalable up to 25 The IT Management and the Program Management Groups, million person-records within five years. respectively, conducted their Family Day at the SSS Canteen, The corresponding ID number issued by the participating Main Office Bldg., Quezon City on 26 November 2010. Major agencies and the CRN shall form part of the stored ID data in Upon successful enrollment, the applicant shall be issued activities included bingo sosyal, raffle draw, fun games, and the CRN Registry. The custodian of the registry is the National with CRN. For practical reasons, the agreed upon CRN- videoke-singing. The group had a total of 465 attendees. (438 Statistics Office (NSO). format adopts the algorithm in the social security number. employees and family members). The CRN and the enrollment data shall be sent to the card The task is to move from the social security card, the core of production system. All participating agencies can establish The Controllership Group and Branch Operations (Corporate the System to UMID card, to the one-look, one-format card its own card factory. Offices) conducted their Family Day at the SSS Main Office for all. The dimension of both cards complies with the ISO Building (Front Lobby) on 20 November 2010. Major activities standards. The social security card is basically teslin, while In the case of the SSS card production system it has a Card included film showing, raffle draw, team activities, and photo UMID is Polyethylene Terephthalate Glycol/Poly Vinyl Chloride Management System (CMS) that maintains ID card applications souvenir. The group had a total of 534 attendees. (275 employ- (PETG/PVC). The former is 2D-barcode-based, while the latter and a Key Management System (KMS) which grants the authority ees and family members). is a contactless card. Both cards are with a guaranteed life of to load application in the card. The KMS has the capability five years. to implement Public Key Infrastructure (PKI) solutions. The The Administration Group and Investments Sector conducted card chip operating system can run applications which are their family day at Club Manila East Resort and Hotel at Taytay, developed by third-parties. This is another initiative by the Rizal on 20 November 2010. Major activities included parlor The data that appear on the front side of both card the Republic National Government. games and water sports, cheering contest, videoke challenge of the Philippines, the face and ghost image of the member, his raffle draw and swimming. The group had 570 attendees. (458 full name and his signature. The printing of birthdate is optional The use of the UMID card may be in the form of visual employees and family members). in the social security card, but mandatory in the UMID. The inspection, a one-to-one AFIS verification through an ATM social security card shows the social security number of the machine, or a contactless card reader. There were a total of 1,891 regular employees, Service Bureau member, while the UMID shows the CRN. The address of the and Job Order personnel who attended the SSS Family Day. member is not printed on the social security card, while it is in The UMID targets: 70 enrollments per eight-hour day; 25 Over-all the number of attendees including family members the UMID card. There is a magnetic stripe on the back side of million enrollees in five years; and 12 million UMID cards in were 1,510. both cards, basically for ATM-type of transactions. five years. As a matter of strategic procedure, priority shall be given to those who have no social security card yet.18 2010 AN N UAL REPORT 19
  12. 12. sPECiAL ARTiCLE THE SSS MUSEUM AND SSS LIBRARY: More than repositories of artifacts and documents Visiting a museum is often stereotyped as an activity confined to those going on a school trip or for members of the middle or upper classes. In reality, however, a trip to a museum can be enjoyed by all and can be both a pleasurable and educational experience. The primary role of a museum is to be a source of education, whether through showcasing collections of cultural products such as pieces of art, telling the story of something important, such as an historical event, or raising awareness of a societal concern, such as poverty. The goal of a museum is to ensure that upon leaving, each visitor knows something that they did not know when they entered. The documentary materials held in museums constitute a vast resource. At a minimum, they consist of institutional records, operational and personnel records, documentation of collections, manuscripts and photographs – in short, the historical memory of an institution and its activities. Museums generally collect, preserve, use and house artifacts for the benefit of society. Museums can be chartered as independent, non-profit organizations, or in special cases, as part of a corporation. On 01 September 2010, as part of its 53rd Anniversary 2010 STAFFING AND OTHER HUMAN and Specialized Examinations, scheduling for CSC Professional celebration, the SSS inaugurated its twin facilities for the public: eligibility examination and counseling for their college the new SSS Museum and the expanded SSS Library. Located RESOURCE MANAGEMENT DIRECTIONS academic course completion. at the basement of the SSS Main Office in Diliman, the two facilities serve as more than a repository of documents, paintings The implementation of the Staffing Plan which started in 2009 or memorabilia. They are the institutional memory bank of Human Resource Management (HRM) Division’s priorities paved the way for another milestone in the implementation of the SSS. focus on the review and enhancement of job functions the SSS approved Rationalization Plan. and qualification requirements of plantilla positions and in the formulation of intensified approaches to training and The SSS Museum is a special kind of museum in that it One of the roll-out activities was to gradually fill-in the holds original documents, printings, photographs and other development programs. This is pursuant to the call of the vacant positions created as a result of the restructuring and memorabilia that show a vivid picture of the SSS and the Management to streamline and automate processes towards the movements and separation of employees, over a period of development of social security in the Philippines. enhanced governance and operational efficiency that would ten years. The initial phase of the staffing plan focused on the redound to meeting members’ expectation and satisfaction. Meanwhile, the SSS Library, formerly housed at the 12th floor absorption of qualified and deserving Service Bureau personnel as directed by the Social Security Commission through SSC of the Main Building, was moved to the basement in a more Along with these, the new Performance Evaluation System spacious area beside the SSS Museum in response to the Resolution No. 509, s. 2009 which led to the regularization of for both Executives and Rank & File employees will be ready growing number of users interested in social security. The SSS 1,131 SBs and the promotion of 68 rank and file employees. for implementation before the end of 2011. This will ensure Library contains an expansive collection of books, magazines, the continuous improvement of individual and organizational journals, and other reference materials on social security, In 2010, a total of 1,089 positions were filled through the business and economics, social sciences, labor, and law. performance and will serve as basis for performance-based promotion and lateral transfer of 853 regular employees, Publications from the World Bank, the International Labour personnel actions (promotions, training & development, absorption of 206 SB personnel and direct-hiring of 30 external Organization, the International Social Security Association, scholarships) and incentives and rewards. Likewise, the applicants for technical and specialized positions as well as and other international institutions are likewise available. implementation of the Human Resource Information System promotion of qualified and deserving Officers-in-Charge (OICs) (HRIS) will address critical human resource and organizational to 117 executive positions. As a way to cater to the information needs of the public, both the requirements and ensure maximized productivity of the SSS SSS Museum and Library have no entrance or user fees. The SSS workforce. Museum is open to visitors from Tuesdays to Fridays, 9:00 am to An assistance plan was implemented by the Management to further support the SBs preparation to complete their 5:00pm, and Saturdays, 9:00am to 12 pm. Meanwhile, the SSS qualification requirements. This assistance included the Library is open from Tuesdays to Fridays, 9:00 am to 6:00pm. conduct of review sessions for CSC Examination and Qualifying20 2010 AN N UAL REPORT 21

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